Ranking and search effort in matching

Lee, Joon-Bae; Wang, Hanna

doi:10.1007/s00199-021-01391-4

Cited by 3 publications

(2 citation statements)

References 16 publications

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“…Modelling strategies to which our method of analyzing the mean could be applied include models of R&D (Aghion et al 2001;Helpman 1991, 2005;Klette and Kortum 2004;Aghion and Howitt 1992). Search and matching models in the tradition of Diamond (1982), Mortensen (1982) and Pissarides (1985) also build on Poisson processes, for instance Lee and Wang (2021), as do some business cycles models (Brunnermeier and Sannikov 2014;Wälde 2005;He and Krishnamurthy 2011, or Di Tella 2017 or the trade literature in the tradition of Melitz (2003).…”

Section: Related Literaturementioning

confidence: 99%

The dynamics of Pareto distributed wealth in a small open economy

2022

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We study a small open economy with labor, capital accumulation, random death, taxation and a government budget balanced in the long run. We offer methods that provide ordinary differential equations for means and analytical expressions for densities. The latter is achieved by solving stochastic differential equations analytically and deriving the density from this solution. Starting from any distribution, the aggregate distribution converges, both on a transition path towards a steady state and on a transition path towards balanced growth, to a Pareto-distribution. We provide an intuitive economic interpretation for a stationary long-run density with an infinite mean in an economy on a balanced growth path. We also show how government tax policy can lead to non-monotonic links between the equilibrium growth rate of the economy and risk aversion of households.

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Section: Related Literaturementioning

confidence: 99%

The dynamics of Pareto distributed wealth in a small open economy

2022

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“…For multiple simultaneous contacts, seeGalenianos and Kircher (2009);Moon (2023) andLee and Wang (2023). 10 While the platform's objective may differ from a firm's profit maximization problem, our characterization of optimal wages provides an important benchmark for all these cases.…”

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Prediction algorithms in matching platforms

Hämäläinen,

Petrikaitė

2024

Econ Theory

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We follow the future trajectory of more targeted wage formation in labor matching platforms, such as freelancing, crowd-sourcing, home-delivery, and ride-hailing, where local job search is coordinated by improving prediction algorithms. A labor matching platform is modelled as a directed search and matching market. We observe that targeted wage setting promotes efficient matching and longer employment spells. However, because a higher employment rate accentuates any disparities between available workers and vacancies, the effects of targeted wage setting on firm competition depend on prevailing market tightness. The impact of targeted wage formation on workers is positive when the vacancy-to-worker ratio is intermediate but turns negative at both extremes. Our results suggest that targeted wage setting may benefit occasional workers while potentially posing drawbacks for full-time platform workers.

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Role of common preferences in the outcome of many-to-many matching

Lee

2022

Economics Letters

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Ranking and search effort in matching

Cited by 3 publications

References 16 publications

The dynamics of Pareto distributed wealth in a small open economy

The dynamics of Pareto distributed wealth in a small open economy

Prediction algorithms in matching platforms

Role of common preferences in the outcome of many-to-many matching

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